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The Supreme Court in the UK, the highest court in the country, last week ruled on a restrictive covenant case for the first time in 100 years [Tillman v Egon Zehnder Ltd [2019] UKSC 32 (3 July 2019)].  It has clarified important points on interpretation, the key takeaway being it will now be easier for employers to enforce covenants against departing employees.

Covenants Must Be Necessary to Protect Employer’s Interests

It has long been established in the UK, that restrictive covenants are an unlawful restraint of trade unless they go no further than is necessary to protect the employer’s legitimate proprietary interests. The Supreme Court recognized as such in quoting the colorful language of a court decision from the 15th century criticizing a plaintiff employer looking to enforce a covenant:   
Continue Reading First UK Supreme Court Decision on Restrictive Covenants for 100 years

As a special feature of our blog—guest postings by experts, clients, and other professionals—please enjoy this blog entry from Jeremy Morton, Partner at Harbottle & Lewis LLP, London, UK.

For the first time ever, we have UK-wide legislation that concerns the protection of confidential information. Modifying its approach in light of a recent consultation exercise, the UK government introduced The Trade Secrets (Enforcement, etc.) Regulations 2018 on June 9, to implement the EU Trade Secrets Directive 2016/943.
Continue Reading UK Adopts New Trade Secrets Legislation

As a special feature of our blog—guest postings by experts, clients, and other professionals—please enjoy this blog entry from Jeremy Morton, Partner at Harbottle & Lewis LLP, London, UK.

The UK government has finally launched a consultation on its proposed “Trade Secrets (Enforcement, etc) Regulations 2018,” in advance of the June 9, 2018, deadline to implement the EU Trade Secrets Directive of 2016. Responses to the consultation are due by March 16.
Continue Reading UK Reveals Its Future Approach to Trade Secrets

WebinarTo accommodate our global audience, the third installment in the 2015 Trade Secrets Webinar Series will be available as an on-demand broadcast on Tuesday, April 14, 2015 at 9:00 a.m. Central.

Seyfarth attorneys Wan Li, Ming Henderson and Daniel Hart will focus on non-compete and trade secret considerations from an international perspective. Specifically, the webinar will involve a discussion of…
Continue Reading Upcoming On-Demand Webinar: International Trade Secrets and Non-Compete Law Update

Season’s Tweetings

In the first UK high court decision on tweeting, the Employment Appeal Tribunal has held that dismissal of an employee for offensive posts on his private twitter account could potentially justify termination under the UK’s unfair dismissal rules.

The employee was dismissed after a colleague raised an anonymous complaint about the content of his tweets. The Court held …
Continue Reading First United Kingdom Decision on Tweeting in Workplace

The recent decision of the High Court in Re-use Collections Limited v. Sendall & May Glass Recycling Ltd. serves as a useful reminder for employers: restrictive covenants introduced during the employment relationship (rather than at the point of hiring) require specific consideration if they are to be enforceable. Under UK law, changes to employment terms require consideration if they …
Continue Reading No Stick Without a Carrot: UK Court Refuses to Enforce Post-Employment Restrictive Covenants

An employee cannot ‘walk out’ and refuse to work to avoid their notice period and the restrictive covenants contained in their contract of employment.

In Sunrise Brokers LLP v Rodgers [2014] EWHC 2633 the High Court held that an employer does not have to accept that a ‘walk out’ by an employee will terminate the contractual relationship. The employer has …
Continue Reading United Kingdom Update on Contractual Notice Periods and Restrictive Covenants

The traditional approach taken by the English Courts to restrictive covenants was confirmed in the decision of the Court of Appeal in Prophet plc v Huggett [2014] EWCA Civ 1013. The Court of Appeal overturned a High Court judge’s decision that the words “or similar thereto” should be added to the relevant clause in order for it to make …
Continue Reading Once You’ve Made Your Restrictive Covenant Bed You Must Lie Upon It…

By Ming Henderson and Razia Begum

With the increasing number of disputes and client queries regarding confidential information in the United Kingdom, the recent case of Personnel Hygiene Services Ltd & ors v. Rentokil Initial UK Ltd , EWCA Civ 29, 29 January 2014, serves as a useful reminder of the extensive protection of confidential information. 

The Court of Appeal,…
Continue Reading Recent Decision Affirms Significant Protections for Confidential Information in United Kingdom

By Peter Talibart, Dan Hart, and Georgina McAdam

In Part I of this post, we focused on the UK Supreme Court’s recent decision in Vestergaard Frandsen and others v. Bestnet Europe Ltd. and others, [2013] UKSC 31.

Although not binding authorities throughout the UK, two other recent decisions from lower courts in England and Wales are …
Continue Reading International Update: Recent Decisions by UK Courts Highlight Protection of Confidential and Proprietary Information in Employment Context — Part II